Adverse Excursion
Developed by John Sweeney, adverse excursion reviews past trades and scans for the largest open loss and typical open loss occurring in a trading system. This information can be used to determine stop loss points.
Adverse Excursion
The loss attributable to price movement against the position in any one trade.
Alpha
Premium that an investment portfolio earns above a given point of reference; a measure of stock performance independent of the market.
Maximum Adverse Excursion
Developed by John Sweeney, Maximum Adverse Excursion (MAE) is designed to calculate the worst possible loss that might occur during a trade.
Maximum Adverse Excursion A historical measurement of the closed losing trades versus the closed profitable trades of a trading system.
adverse excursion on those winners, and the losses on the losing trades, will quickly
become intolerable. The secret is to find a stop that effectively controls losses with
out sacrificing too many of the trades that provide profits.
Maximum Adverse Excursion. The dollar amount of all trades against us, in the indicated time period, until we were stopped out at either a loss or gain. Expressed as dollars for three contracts.
Adverse Excursion: Loss attributable to price movement against the position in any one trade.
AKA: Abbreviation for "automated knowledge acquisition".
This refers to the use of programs to create knowledge needed by other programs.
For example, let's look at the idea of Maximum Adverse Excursion (i.e., the idea that losing trades don't go too far against us). This gives you an idea for limiting your stops, but when you try to apply it to your trading you may find some problems.
 See also: Trading, Loss, Market, Analysis, Signal
  
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